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Performance Management

A Rule Followed Blindly Is a Principle Betrayed Quietly

October 8, 2025 By Nagesh Belludi Leave a Comment

Rules—like laws—exist to civilize chaos. In the service industry, they promise fairness and consistency—noble aims, until they ossify into dogma. When employees are reduced to rule-spouting mannequins, the result isn’t order but inertia. A workforce trained to obey rather than think will reliably deliver less than it could, while the system smugly applauds its own mediocrity.

Some rules deserve reverence. Call them red zone: safety, legality, ethics. These are nonnegotiable. But most rules aren’t red zone. They’re yellow. And yellow rules, when treated as sacred, become absurd. They’re guidelines, not commandments. They exist to be interpreted—not enforced with the zeal of a customs officer confiscating a banana.

Discretion isn’t anarchy. It demands boundaries—but also trust. Define what staff can spend, compromise, accommodate, decide, and deviate from. Give them the rationale behind the rule, not just the regulation. Teach them to think, not to flinch.

When Obedience Undermines Excellence: Ritz-Carlton's Empowerment Ethos in Action Consider the Ritz-Carlton. Every employee—from housekeeper to concierge—is authorized to spend up to $2,000 per guest, per incident, without managerial approval, to resolve a problem or elevate an experience. It sounds extravagant—and admittedly, most issues won’t come close to needing a four-figure remedy. But that’s not the point. The policy isn’t about the literal dollar amount. It’s about the psychological effect of front-loading trust. The generous limit signals deep belief in the employee’s judgment. It liberates staff to act decisively and without hesitation.

That kind of empowerment transforms service into ownership. It fuels morale, initiative, and personal investment in outcomes. For guests, it delivers not just swift resolutions—but memorable gestures. These are moments that forge lasting emotional loyalty. They’re not indulgences. Ritz sees them as smart calculations—acts of discretionary judgment with an eye toward the lifetime value of a loyal customer. Ritz-Carlton knows it can’t buy loyalty with rules, but it can earn it with discretion.

Idea for Impact: Good employees should be allowed to break good rules

Fear is the enemy of judgment. A workforce trained to avoid mistakes will never achieve excellence. The best service isn’t delivered by smiling bureaucrats. It’s delivered by people trusted to use their brains. A rule is only as good as the judgment behind its use.

Wondering what to read next?

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  2. From the Inside Out: How Empowering Your Employees Builds Customer Loyalty
  3. How to Develop Customer Service Skills // Summary of Lee Cockerell’s ‘The Customer Rules’
  4. Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness
  5. How Ritz-Carlton Goes the Extra Mile // Book Summary of ‘The New Gold Standard’

Filed Under: Leading Teams, MBA in a Nutshell, Mental Models, The Great Innovators Tagged With: Courtesy, Customer Service, Employee Development, Great Manager, Human Resources, Likeability, Motivation, Performance Management

Managing the Overwhelmed: How to Coach Stressed Employees

September 22, 2025 By Nagesh Belludi Leave a Comment

Managing the Overwhelmed: How to Coach Stressed Employees It’s not pressure that breaks people—it’s pretending it isn’t there. Your job isn’t to shield your team from pressure, but to sharpen their ability to withstand it. Don’t reach for platitudes. Reach for precision. Here’s how to lead like it matters:

  • Ban multitasking from your team’s repertoire. It’s not a skill—it’s a slow bleed of attention and output. Force clarity. Demand focus. Two priorities, not ten. Excellence requires concentration, not dispersion.
  • Impose structure before chaos does. Spontaneity is a luxury few can afford. Instruct your team to plan the day before—ruthlessly. Prioritize, time-block, and start the day with intent, not inbox roulette.
  • Call out perfectionism for the vanity project it is. It’s not diligence—it’s delay dressed up as virtue. Teach your team to distinguish between what must be flawless and what simply must be finished.
  • Draw the line—and defend it. Constant availability is not commitment; it’s capitulation. Define what “off” means. Enforce it. Protect downtime like it’s oxygen—because it is.
  • Treat stress as a signal, not a sin. Chronic strain often points to deeper dysfunction: misaligned roles, toxic dynamics, or your own managerial evasions. Don’t soothe—intervene.
  • Make asking for help a norm, not a confession. The lone-hero fantasy is dead. Encourage your team to seek support, share burdens, and use the resources you claim to provide.
  • Invite candor before silence curdles into resentment. Don’t tell people to “move on.” Ask what’s wrong. Listen. Unspoken frustration doesn’t evaporate—it festers.

And finally: look in the mirror. Much of your team’s stress may originate from your systems, your silence, or your standards. Fix that first.

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Filed Under: Health and Well-being, Leading Teams, Managing People, MBA in a Nutshell Tagged With: Coaching, Conflict, Great Manager, Human Resources, Mentoring, Performance Management, Stress, Workplace

How to … Lead Without Driving Everyone Mad

September 17, 2025 By Nagesh Belludi Leave a Comment

How Bosses Can Drive Employees Crazy---and What They Can Do Instead Some managers inspire loyalty. Others, despite good intentions, slowly drain morale. This isn’t about tyrants—it’s about the well-meaning but unaware. If your team looks tense every Monday, there’s probably a reason.

Leadership sounds like vision and guidance. But in reality, it often means people grinding their teeth while their boss chips away at morale. Dysfunction doesn’t crash in—it creeps in through habits that quietly wear teams down.

  1. Don’t humiliate people in public. It’s not tough love—it’s bullying. Speak privately. Help them improve without turning it into a show.
  2. Don’t gossip about someone before speaking to them. It damages trust and spreads problems. Talk directly. Quietly. Like an adult.
  3. Don’t set impossible goals and act shocked when people burn out. High standards are fine. Just make sure they’re human. Let people breathe.
  4. Don’t take credit for your team’s work. It doesn’t make you look strong—it makes you look insecure. Recognition is fuel. Share it.
  5. Don’t change rules on a whim. People need consistency. If something shifts, explain why.
  6. Don’t avoid hard conversations. Problems don’t vanish—they rot. Face them with clarity and empathy.
  7. Don’t chase wins that wreck the team. Real success lasts. Build something people want to stay in.

Idea for Impact: Leadership isn’t about noise. It’s about steadiness, respect, and getting the few basics right.

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  4. Direction + Autonomy = Engagement
  5. Never Criticize Little, Trivial Faults

Filed Under: Leading Teams, Managing People, MBA in a Nutshell Tagged With: Coaching, Conversations, Feedback, Great Manager, Management, Mentoring, Performance Management

Be Careful What You Count: The Perils of Measuring the Wrong Thing

September 15, 2025 By Nagesh Belludi Leave a Comment

Be Careful What You Count: The Perils of Measuring the Wrong Thing There’s an old joke about the Soviet Union’s approach to industrial planning. It’s been told so often it’s practically folklore, but like all good parables, it endures because it captures something fundamentally true about human behavior under pressure.

In the days of the Soviet Union, Moscow set production quotas, which became the dominant concern of factory managers.

When a commissar told a nail factory’s manager that he would be judged on the number of nails the factory produced, the factory had made lots of little, useless nails.

The commissar, recognizing his mistake, then informed that the factory manager’s performance would be judged on the weight of the nails produced. Consequently, the factory then produced only big nails.

This isn’t just a cautionary tale about bureaucratic absurdities. It’s a lesson in what happens when incentives are designed by people who assume that metrics are neutral, incorruptible things. They’re not. Metrics are like mirrors in a funhouse: they reflect something, but rarely what you intended.

Myles J. Kelleher, in Social Problems in a Free Society: Myths, Absurdities, and Realities (2004,) offers another gem from the Soviet archives:

One Soviet shoe factory manufactured 100,000 pairs of shoes for young boys instead of more useful men’s shoes in a range of sizes because doing so allowed them to make more shoes from the allotted leather and receive a performance bonus.

The logic is impeccable. The outcome is ridiculous. And yet, this isn’t just a Soviet problem. It’s a human one. People respond to the rules of the game. If you reward volume, you’ll get volume—regardless of whether it’s useful, desirable, or even remotely sane.

The significance is blunt: people don’t optimize for purpose; they optimize for score. And if the scoreboard is flawed, so is the game.

Idea for Impact: Don’t Incentivize the Wrong Game

The moment you tie rewards to a number, behavior shifts to serve that number—regardless of whether it reflects anything meaningful. That’s the risk. What gets measured gets done, but it also gets distorted or quietly avoided. The point is to measure what matters, and to understand why it matters.

Start by asking what you’re trying to achieve. If the goal is customer satisfaction, measure the experience, not the volume of calls. If it’s innovation, don’t count patents—look at whether they solve real problems. Activity isn’t the same as effectiveness, and often works against it.

Then look at the resources involved. Efficiency only matters if it supports a valuable outcome. A team chasing empty metrics isn’t efficient—it’s drained. And before introducing any performance measure, ask how it might be exploited. If someone can meet the target while ignoring the purpose, you haven’t built accountability—you’ve created a loophole.

Metrics are instruments. Used well, they clarify. Used poorly, they mislead. Measure carefully.

Reward carelessly, and you’ll get exactly what you asked for—just not what you needed.

Wondering what to read next?

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  2. Numbers Games: Summary of The Tyranny of Metrics by Jerry Muller
  3. Why Incentives Backfire and How to Make Them Work: Summary of Uri Gneezy’s Mixed Signals
  4. People Do What You Inspect, Not What You Expect
  5. Master the Middle: Where Success Sets Sail

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Decision-Making, Ethics, Goals, Motivation, Performance Management, Persuasion, Psychology, Targets

People Work Best When They Feel Good About Themselves: The Southwest Airlines Doctrine

August 20, 2025 By Nagesh Belludi Leave a Comment

When People Feel Good, They Work Best: Herb Kelleher and Colleen Barrett's Southwest Way Southwest Airlines didn’t rise to prominence through spreadsheets or sycophancy. It was built by a jolly, chain-smoking Texas lawyer named Herb Kelleher (1931–2019,) who believed that business didn’t have to be boring—or cruel. A maverick in pinstripes, Kelleher co-founded the airline in 1967 with a cocktail napkin sketch and a rebellious grin, determined to inject his irreverent spirit into every corner of the company. He didn’t just want to run an airline—he wanted to run one that laughed in the face of corporate pomposity.

Kelleher’s philosophy was as unorthodox as it was effective. He rejected the sacred cow of “customer first” and instead declared, “If employees are treated well, they’ll treat the customers well. If the customers are treated well, they’ll come back, and the shareholders will be happy.”

This wasn’t a slogan—it was a strategy. And it worked. He understood what too many executives still miss: the happiness of a company’s employees is vital to its business success. At the heart of this culture was Colleen Barrett (1944–2024,) who began as Kelleher’s legal secretary and rose to become president and COO. She was the steward of Southwest’s soul, and she made it her mission to ensure employees felt not just respected, but loved. When Southwest went public in 1971, it chose the stock ticker LUV—a nod to its home base at Dallas Love Field and a cheeky emblem of its people-first ethos.

We almost demand that you have fun and you enjoy yourself. I spend probably seventy to eighty percent of my time trying to assure that our employees feel good about their work environment, feel that we care about them as people, and feel that they are empowered and really encouraged to make decisions from the heart. We really want people to do the right thing versus doing things right. If you enjoy what you’re doing, you will probably do it better.

'Nuts- Southwest Airlines' by Kevin and Jackie Freiberg (ISBN 0767901843) Barrett wasn’t just a leader—she was “Mom” to the workforce. Her office was adorned with a “wall of hearts,” a floor-to-ceiling collage of photos, thank-you notes, and memories. The Dallas headquarters itself was a shrine to joy: walls plastered with snapshots of birthdays, barbecues, community service, and cultural celebrations. Parties weren’t distractions—they were doctrine. They reminded everyone that work could be human. The power of giving employees the freedom to be themselves wasn’t just tolerated—it was institutionalized. As Kevin and Jackie Freiberg wrote in Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success (1995; my summary):

Love conquers the defensiveness that closes people to influence. When people feel loved, the walls come down. When people look out for their colleagues’ interests, their colleagues are more open to accepting new ideas and behaving in prescribed ways.

A lot of people at Southwest Airlines believe that the reason Herb and Colleen have so much influence within the company has less to do with their positions than with the way that they consistently demonstrate their love for employees. Leading through love means you’ve got to care. Love is a source of influence.

But time, like altitude, changes perspective. In recent years, Southwest has begun to resemble the very industry it once mocked. The camaraderie remains, but the warmth has cooled. The parties are fewer, the policies more rigid, and the once-radical culture has been diluted by the gravity of scale and the pressures of Wall Street.

Still, the lesson endures: the happiest worker is not the one most surveilled, but the one most trusted to think. And in a world where most companies treat morale as a line item, Southwest’s early years stand as a reminder that a culture that celebrates its people will outlast one that merely exploits them.

That’s not sentimentality—it’s strategy. And it’s one worth defending.

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Filed Under: Business Stories, Leading Teams, Managing People, MBA in a Nutshell, The Great Innovators Tagged With: Employee Development, Great Manager, Human Resources, Leadership, Likeability, Motivation, Performance Management, Persuasion

Virtue Deferred: Marcial Maciel, The Catholic Church, and How Institutions Learn to Look Away

August 13, 2025 By Nagesh Belludi Leave a Comment

Virtue Deferred: Marcial Maciel, The Catholic Church, and How Institutions Learn to Look Away Organizations often face a moral dilemma when confronting high-performing individuals—those rainmakers whose charisma and drive yield tangible results (Jack Welch’s ‘Four Types of Managers’ model.) They secure vital funding, lead winning campaigns, and appear central to the organization’s mission. Their value is clear. Their presence seems irreplaceable. Leadership, captivated by performance, may grow dependent on them.

Yet behind the brilliance, some of these figures violate core principles. They may cultivate toxic workplaces, breach ethical boundaries, or engage in outright abuse. This reveals a troubling paradox: the same individuals who fuel success may simultaneously erode the institution’s moral foundation. Fearing the loss of key assets, organizations may choose to look the other way—or worse, actively protect them.

Tolerance of this behavior extracts a steep cost. Morale withers. Trust deteriorates. Cultures of fear and duplicity take root. Behind a polished facade, core values decay. Integrity is sacrificed for short-term gain.

Few cases illustrate this more vividly than that of Marcial Maciel and the Catholic Church.

A Charismatic Predator Shielded by Power

In 2019, to mark the 80th anniversary of Pius XII’s elevation to Bishop of Rome, Pope Francis announced the opening of Vatican archives from his papacy. Scholars welcomed the decision, many of them drawn to longstanding controversies regarding Pius XII’s role during the Holocaust.

Included in this research were damning revelations about Marcial Maciel Degollado (1920–2008,) the Mexican priest who founded the Legion of Christ and the Regnum Christi religious order. Lauded as “the greatest fundraiser of the modern Roman Catholic Church,” Maciel transformed the Legion into a formidable spiritual, financial, and political force.

Beneath this polished image, however, lay systemic abuse.

Maciel was a chronic drug addict and serial predator who molested at least 60 boys and young men under his care. After his death, reports revealed that he had fathered multiple children—two of whom he allegedly abused—and maintained sexual relationships with several women, including one reportedly underage. His authorship of the book Integral Formation of Catholic Priests (1997) stands in grim contrast to the depraved reality of his life and actions, underscoring a profound institutional moral corruption.

The archives showed that senior Church officials, including Pope Pius XII, were aware of Maciel’s misconduct as early as the 1940s. Efforts to remove him began in 1956 but were halted following the pope’s death. Despite mounting evidence, Maciel remained in power for decades.

'Betrayal Crisis Catholic Church' by Boston Globe (ISBN 0316776750) Why was he protected? Because he was more than a priest—he was a rainmaker. His ability to attract wealth and influence made his misconduct inconvenient. The institution prioritized survival over accountability.

Even after repeated warnings and detailed accusations, the Church delayed meaningful action for over half a century. Only in 2006 did Pope Benedict XVI remove Maciel from public ministry, ordering him into a secluded life of prayer and penance. He died two years later. In 2010, the Vatican formally condemned his “reprehensible actions” and placed the Legion under direct papal oversight.

The Institutional Blind Spot: When Success Shields Abuse

Maciel’s story is not just a case of individual moral failure. It is a systemic cautionary tale. He turned the Legionaries of Christ into a financial and political juggernaut, directing millions toward Church coffers and gaining favor with powerful bishops and cardinals. In the institutional calculus of power, his sins were inconvenient, but his financial value was immense. He was shielded not despite his crimes, but because of them.

When institutions conflate prospering with virtue, they protect the golden goose—even when it lays rotten eggs. Often this happens not out of malice, but out of habit. In doing so, they risk betraying the very mission they claim to uphold.

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Filed Under: Business Stories, Leadership, Sharpening Your Skills Tagged With: Attitudes, Biases, Conviction, Ethics, Getting Along, Integrity, Likeability, Motivation, Performance Management, Psychology

Lessons in Leadership and Decline: CEO Debra Crew and the Rot at Diageo

July 25, 2025 By Nagesh Belludi Leave a Comment

Lessons in Leadership and Decline: CEO Debra Crew and the Rot at Diageo Another heavyweight in consumer goods, Diageo, has entered a state of churn. CEO Debra Crew exited last week in a “mutual agreement”—a phrase that barely disguised the inevitability of her departure. It wasn’t a shock, but a slow unraveling: a tenure marked more by erosion than evolution.

Leadership is often a hostage of timing. Crew’s two-year stint was defined as much by strategic drift as by the lingering shadow of her predecessor’s legacy. She rose to the top in June 2023 following the sudden death of Sir Ivan Menezes—who had built Diageo’s fortunes on “premiumization,” a strategy that padded margins during the pandemic’s home-drinking boom. That success, however, ossified into institutional bloat.

Her term began with a bruising profit warning in November 2023. A nosedive in Latin America—blamed on distributor overstocking—exposed a startling disconnect from ground-level dynamics. Crew’s attempts to localize the crisis at a capital markets day rang hollow. The Times later described the company’s consumer blind spot as having “the whiff of incompetence.”

By early 2024, Diageo’s valuation had halved from its pandemic highs. CFO Lavanya Chandrashekar resigned in May. Months earlier, Crew had abandoned the company’s 5–7% medium-term growth target, citing tariff uncertainty and posting a 0.6% sales decline. Chair Javier Ferrán—long a patient steward—stepped down soon after. His departure, followed by the arrival of Sir John Manzoni, left Diageo’s leadership in flux just as the ship was listing and she had asked the board to quell speculation about her job.

Perhaps Crew was less a culprit than a proxy. Every leader is bound by the winds of their season. Spirits makers now face a hostile cocktail: Gen Z’s waning interest in alcohol, the rise of weight-loss drugs, and renewed risk of tariff whiplash. Pernod Ricard and Rémy Cointreau have suffered even steeper stock slides.

This episode offers another case study in how leadership narratives flatten complexity. Good times are hailed as proof of executive brilliance; bad times, as evidence of personal failure. The truth is messier: prosperity often arises from external tailwinds—technological shifts, market cycles, latent consumer trends—already in motion. Leaders rarely engineer them. They inherit them.

The trouble with leadership is that it is most praised—or punished—when least responsible. Strategic decisions marinate across fiscal years. Today’s success often echoes yesterday’s bets, while macroeconomic forces—unpredictable, impersonal, indifferent—reshape the field faster than any executive can pivot. Yet our mythology demands heroism. We cast leaders as masterminds of triumph or scapegoats for collapse, forgetting that most simply ride the wave.

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Filed Under: Business Stories, Great Personalities, Leadership, Leadership Reading, MBA in a Nutshell Tagged With: Change Management, Icons, Integrity, Leadership, Leadership Lessons, Leadership Reading, Performance Management, Wisdom

The Speed Trap: How Extreme Pressure Stifles Creativity

May 5, 2025 By Nagesh Belludi Leave a Comment

The Speed Trap: How Extreme Pressure Stifles Creativity

Speed is beneficial—until it isn’t. Moving faster often means becoming leaner, sharper, and more efficient. It fuels innovation and keeps you ahead of the competition. However, excessive speed can backfire. Managers pushing harder with increased workloads and tighter deadlines create rising pressure. As a result, creativity declines, insightful thinking stalls, and rushed work compromises quality, accuracy, and overall performance. In such environments, passion gradually fades.

Success is not solely about speed; it requires sustainability. Here’s how:

  • Set Realistic Deadlines: Commitment should not lead to exhaustion; it’s a sign of imbalance. Success must align with well-being by eliminating distractions and focusing on priorities that truly matter.
  • Be Honest About Urgency: Artificial deadlines damage trust and create chaos. When everything is urgent, nothing is. Push back against unnecessary demands, prioritize effectively, and remove distractions to maintain focus.
  • Explain the “Why”: People engage more when they understand the purpose. Without a clear explanation, urgency lacks meaning and motivation dwindles.

Idea for Impact: Sustainable success requires balance. Involve your team, prioritize wisely, and work smart—not just fast.

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Filed Under: Leading Teams, Managing People Tagged With: Coaching, Great Manager, Human Resources, Leadership, Motivation, Performance Management, Workplace

Should Staff Be Allowed to Do ‘Life Admin’ at Work?

February 27, 2025 By Nagesh Belludi Leave a Comment

Should Staff Be Allowed to Do 'Life Admin' at Work? Life admin—the endless personal tasks like making appointments, coordinating with kids or a spouse, switching insurance, paying bills, responding to personal emails, dealing with financial issues, and managing shopping returns. It’s the behind-the-scenes work that keeps life running smoothly.

Let’s face it: life admin will occasionally spill into work hours. Managers, accept it. A bit of personal errand here and there isn’t the end of the world. Allowing some life admin during office hours can actually boost productivity and engagement.

Some savvy employers offer personal assistants or concierge services to help with these tasks, improving work-life balance and boosting retention. You don’t need to roll out the red carpet, but don’t be too rigid about life admin during work hours.

Remember, your staff aren’t robots programmed to work non-stop. The cognitive load of keeping their lives in order is no small feat and can certainly impact their focus and productivity. The best teams are those where managers trust their staff and understand that a little flexibility can go a long way.

Just keep an eye on things. If personal tasks start to crowd out work, it might be time to suggest handling life admin at home—or at least outside office hours—especially if the office buzz is turning into grumbling. Balance is key to keeping everyone productive and content.

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When Work Becomes a Metric, Metrics Risk Becoming the Work: A Case Study of the Stakhanovite Movement

February 10, 2025 By Nagesh Belludi Leave a Comment

Aleksei Stakhanov: The Soviet Miner Who Redefined Productivity Standards

The Struggles of a Low-Performing Mine & The Birth of a Hero

Alexei Grigoriyevich Stakhanov (1906–77) was a miner from Donbass, a coal-rich region in Soviet Ukraine where all mines were state-run with strict monthly production quotas. Failure to meet these targets often resulted in trouble for managers and local Communist Party officials.

Stakhanov worked in one of the region’s lowest-performing mines. Despite having no education beyond primary school, he was determined to improve his community’s productivity. Driven by a deep sense of responsibility, he relentlessly searched for ways to boost output and eventually devised a novel solution.

In the 1930s, miners used picks to extract coal, which was then hauled out by pit ponies. In cramped tunnels, miners would hack away at the coal while propping up the roof with logs. Stakhanov proposed a new system: one miner would focus on continuously picking coal, another would load it onto carts, a third would prop the roof, and a fourth would guide the ponies. He also suggested replacing the traditional pick with a heavy mining drill, requiring specialized training. Despite initial skepticism from the manager, Stakhanov persuaded the team leader and local party official to give it a try.

On the night of August 30, 1935, Stakhanov, along with three colleagues, entered the mine with the party boss and a local reporter. Six hours later, they emerged victorious, having mined 102 tons of coal—more than 14 times the original target.

The feat drew immediate attention. The local newspaper published Stakhanov’s story, and Soviet industry minister Sergo Ordzhonikidze shared it with Joseph Stalin. Soon, Stakhanov’s achievement was celebrated in Pravda, the central party newspaper. After Stalin’s endorsement, the story spread across the Soviet Union, and Stakhanov became a national hero and a symbol of Soviet productivity.

The Obsession with Metrics

Stakhanov’s achievement remains a pivotal moment in Soviet history. It became a shining example of efficiency, elevating him to the status of the ideal worker in the eyes of the Soviet state. His success sparked the Stakhanovite Movement, a state-driven campaign that encouraged workers to exceed their quotas and demonstrate the superiority of socialism.

Stakhanov’s image quickly flooded posters and newspapers, celebrated as a national role model. In December 1935, as America was still grappling with the Great Depression, Time magazine featured Stakhanov on its cover, bringing his story to American shores and solidifying his international fame. After his death, the important industrial city of Kadiivka in the Donbass region was renamed Stakhanov in his honor, a tribute that lasted from 1978 until 2016.

The Stakhanovite Movement: When Metrics Drive Work, Not Outcomes The Stakhanov Movement capitalized on the collective desire for improvement and transformation, leading to increased productivity through better-organized workflows. However, as often happens, when metrics become the sole focus, they overshadow the true purpose of the work. In the Soviet system, the state had to ensure control over production, align workers’ efforts with central economic plans, and maximize output. Quotas played a key role in this strategy, setting mandatory production targets across various industries. Over time, these quotas became the primary measure of success, with workers judged by numbers rather than the quality or long-term impact of their efforts. Those who failed to meet the targets risked being labeled as “wreckers” and accused of sabotaging the system. Stakhanovites were celebrated as heroes, rewarded with media attention, lavish rewards, and even having their names immortalized on factories and streets.

This obsession with metrics led to manipulation, particularly with the “socialist competition” that the Stakhanovite Movement encouraged. Groups and individuals competed to exceed production norms. Workers, fixated on meeting targets, sometimes resorted to shortcuts or ignored safety standards to boost output. As a result, the real goals—sustainable production, worker welfare, and innovation—became secondary pursuits. The metric of raw output became the work itself, distorting its true purpose.

The Obsession with Metrics: A Cautionary Tale

The Stakhanovite Movement highlighted the dangers of an obsession with productivity metrics and how they can distort the true nature of work.

While metrics can serve as useful benchmarks, aligning efforts with goals and driving performance, excessive focus on them can shift the emphasis from the work itself to the measurement process. Each new metric introduces an opportunity cost—resources are drained, and your team’s time is consumed.

When employees become fixated on hitting targets, they often prioritize numbers over innovation and lose sight of the bigger picture. Over-reliance on metrics can distort performance, neglect long-term goals, and stifle creativity.

Complex tasks involve many variables that a single metric cannot capture. Focusing too narrowly on one measure risks oversimplifying the situation, missing critical factors, and turning the work into a mechanical process.

Idea for Impact: Challenge metrics that don’t add value. Discard those that fail to measure real success. Take control of meaningless measurements and strike the right balance between measurable performance and the true purpose of the work.

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  2. Be Careful What You Count: The Perils of Measuring the Wrong Thing
  3. Numbers Games: Summary of The Tyranny of Metrics by Jerry Muller
  4. People Do What You Inspect, Not What You Expect
  5. Master the Middle: Where Success Sets Sail

Filed Under: Business Stories, Leading Teams, Managing People, Mental Models Tagged With: Biases, Critical Thinking, Decision-Making, Ethics, Goals, Motivation, Performance Management, Persuasion, Psychology, Targets

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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Meditations

Meditations: Marcus Aurelius

Roman Emperor Marcus Aurelius's diaries remain the sterling paradigm of the stoic mindset: civility, moderation in all things, and taking in triumph and tragedy with equanimity.

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